FxWirePro: Glimpse through WTI and Brent OI rebalancing and hedge petrocurrency via vanilla options as crude inches higher range

Jan 03, 2018 10:12 am UTC| Research & Analysis Insights & Views

In 2018, the crude oil balance will likely tighten and inventories draw, on a likely 9-month extension of the OPEC-Russia accord and amid continued firm demand growth. The speed at which US shale responds will help...

FxWirePro: EUR/JPY valuations in sync with 1Y skews, 1y RRs highest among G10 FX space – Bid OTC indications for delta-hedges, directional and aggressive traders

Jan 03, 2018 09:40 am UTC| Research & Analysis Insights & Views

EURJPY PPP and FEER valuations are the yen bears arch-enemies, but they apply far more to the USDJPY than to the EURJPY, given that the euro, too, is significantly undervalued on a PPP basis. The PIIE puts a...

FxWirePro: EMFX forecasts indicate SGD’s bearishness, trade balance cushions continued bullishness – Credit call spreads for directional hedging

Jan 03, 2018 07:02 am UTC| Research & Analysis Insights & Views

Against the forwards, the forecasts have been the most bearish on the TWD, KRW, THB, RUB SGD and the most bullish on the TRY, CZK PLN. On a regional basis, EMEA should outperform. We could foresee slightly more EM Asian...

Announcement: Moody's: Domestic and global credit impact of Korean conflict would depend on duration and severity

Jan 03, 2018 01:45 am UTC| Research & Analysis

Moodys Investors Service says that while the potential of a military escalation on the Korean peninsula remains for now a low-probability event, the credit impact of a conflict whether short or prolonged would affect...

FxWirePro: New Year trade resolutions for EMFX baskets

Jan 02, 2018 12:48 pm UTC| Research & Analysis Insights & Views

We reckon bullish USD/EM baskets, spot rates should be upwardly biased, and the bulk of total return performance in 2018, if any, should come via carry similar to the past two years. The risk to our forecasts is a...

FxWirePro: Robust manufacturing sector boosts up Singapore/Asian exports, likely to prolong in 2018, buzzing yields in SGD – Credit Call Spreads to hedge

Jan 02, 2018 12:25 pm UTC| Research & Analysis Insights & Views

The GDP in Singapore advanced an annualized 2.8% QoQ basis in the last three months of 2017, below 9.4% in Q3 and market expectations of 2.9%, advance estimates report. The Singapore economy grew a strong 3.5% in 2017...

FxWirePro: Save and preserve ECB officials’ words but unwise to jump the guns by misinterpreting to bid euro longs – Hedge EUR/GBP via call spreads

Jan 02, 2018 11:18 am UTC| Research & Analysis Central Banks

All hawks eyes are on when will the ECB end its QE programme? While the member of the ECB Executive Board Benoit Coeure is hoping that the additional programme until September might have been the last one. For now, the QE...